Uranium Companies

There are very few pure uranium companies. Most companies, especially the small exploration type, are active in more than the uranium industry. This blog makes no attempt to guage the percentage of a companies activity that are related to the finding, mining or processing of uraniun. They all do, however, have some uranium activities (to the best of our review).

Merv's Uranium Indices

I have developed two Uranium Indices. They each have the same component stocks but are calculated using different methodologies. My weekly Index is based upon the average weekly performance of the component stocks. My daily Index is based upon the daily average of the component stocks open, high, low and close prices along with the daily average volume of all component stocks.

Click on the chart or table to enlage the view.

10 December 2009

Merv's Daily Commentary 10 Dec 2009

After The Close, 10 Dec 2009

Merv’s Daily Uranium Index
Market Data

Open: 177.06
High: 180.58
Low: 174.52
Close: 178.35
Volume: 14672

Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.

Usually I am encouraged when volume increases greatly when the Index moves higher. However, today’s high volume action was the result of one stock (Freewest) that has a take over in play. This does not reflect upon the overall market so we must take the indicated volume increase with some caution. This goes also for the volume indicator which moved into new all time highs as a result.

The Daily Index did not really reflect this high volume activity. Freewest itself barely moved higher, less than 10%. The Index move was more of a lateral move although, like yesterday, it broke through some indicators and turned ratings around a little. Getting right to them.

The Merv’s Daily Uranium Index closed higher by 1.64 points or 0.93%. There were 20 winners, 17 losers and a whole bunch of stocks (13) doing nothing. As for the five largest stocks, Cameco gained 2.7%, First Uranium lost 3.2%, Paladin lost 0.5% (today’s paper mentioned Cameco may take a run at Paladin but that’s not reflected in the trading), Uranium One gained 1.3% and uranium Participation lost 2.0%. The best daily winner was Formation Capital with a gain of 12.3% while the loser was Consolidated Abaddon with a loss of 6.7%.

We went bullish on the intermediate term yesterday so as you might guess we’re still BULLISH today. Nothing has changed in the indicators to cause me to change the rating.

On the short term we were still bearish yesterday but things have changed somewhat today. The Index closed above its short term moving average line and the line has turned very, very slightly upwards. The momentum indicator just barely closed above its still negative trigger line but the indicator is now once more in its positive zone. The short term rating is back to BULLISH today.

For the immediate direction of least resistance, there is yet nothing serious to get me to change from my basic lateral direction. Hopefully, things might start to perk up but as of today, the perking up has been pretty mild.

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